ANHEUSER-BUSCH INBEV-SPN ADR (BUD) Stock Fundamental Analysis
USA - NYSE:BUD - US03524A1088 - ADR
59.56 USD
-0.5 (-0.83%)
59.56 USD
0 (0%)
Taking everything into account, BUD scores 5 out of 10 in our fundamental rating. BUD was compared to 32 industry peers in the Beverages industry. BUD has a medium profitability rating, but doesn't score so well on its financial health evaluation. BUD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BUD was profitable.
BUD had a positive operating cash flow in the past year.
In the past 5 years BUD has always been profitable.
BUD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BUD has a Return On Assets (3.37%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 8.82%, BUD is in line with its industry, outperforming 53.13% of the companies in the same industry.
BUD has a Return On Invested Capital (6.35%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for BUD is below the industry average of 10.78%.
The 3 year average ROIC (6.05%) for BUD is below the current ROIC(6.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 8.82% | ||
| ROIC | 6.35% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
1.3 Margins
BUD has a better Profit Margin (12.16%) than 81.25% of its industry peers.
In the last couple of years the Profit Margin of BUD has declined.
BUD has a Operating Margin of 26.51%. This is amongst the best in the industry. BUD outperforms 84.38% of its industry peers.
In the last couple of years the Operating Margin of BUD has declined.
BUD's Gross Margin of 55.70% is fine compared to the rest of the industry. BUD outperforms 78.13% of its industry peers.
BUD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.51% | ||
| PM (TTM) | 12.16% | ||
| GM | 55.7% |
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
2. Health
2.1 Basic Checks
BUD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
BUD has less shares outstanding than it did 1 year ago.
BUD has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BUD has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.67, we must say that BUD is in the distress zone and has some risk of bankruptcy.
BUD has a Altman-Z score of 1.67. This is comparable to the rest of the industry: BUD outperforms 40.63% of its industry peers.
BUD has a debt to FCF ratio of 6.48. This is a slightly negative value and a sign of low solvency as BUD would need 6.48 years to pay back of all of its debts.
The Debt to FCF ratio of BUD (6.48) is better than 62.50% of its industry peers.
BUD has a Debt/Equity ratio of 0.89. This is a neutral value indicating BUD is somewhat dependend on debt financing.
BUD has a worse Debt to Equity ratio (0.89) than 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.48 | ||
| Altman-Z | 1.67 |
ROIC/WACC1.03
WACC6.16%
2.3 Liquidity
A Current Ratio of 0.64 indicates that BUD may have some problems paying its short term obligations.
BUD's Current ratio of 0.64 is on the low side compared to the rest of the industry. BUD is outperformed by 84.38% of its industry peers.
A Quick Ratio of 0.48 indicates that BUD may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.48, BUD is doing worse than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.61% over the past year.
BUD shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.83% yearly.
BUD shows a decrease in Revenue. In the last year, the revenue decreased by -2.35%.
BUD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.69% yearly.
EPS 1Y (TTM)9.61%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8.89%
Revenue 1Y (TTM)-2.35%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-2.15%
3.2 Future
Based on estimates for the next years, BUD will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.15% on average per year.
The Revenue is expected to grow by 4.34% on average over the next years.
EPS Next Y7.4%
EPS Next 2Y9.55%
EPS Next 3Y12.23%
EPS Next 5Y12.15%
Revenue Next Year1.22%
Revenue Next 2Y3.11%
Revenue Next 3Y3.98%
Revenue Next 5Y4.34%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.35, BUD is valued correctly.
Based on the Price/Earnings ratio, BUD is valued a bit cheaper than 71.88% of the companies in the same industry.
BUD is valuated rather cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.32, the valuation of BUD can be described as correct.
BUD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BUD is cheaper than 71.88% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, BUD is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 13.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BUD is valued cheaper than 81.25% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BUD indicates a rather cheap valuation: BUD is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.9 | ||
| EV/EBITDA | 8.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BUD does not grow enough to justify the current Price/Earnings ratio.
BUD has a very decent profitability rating, which may justify a higher PE ratio.
BUD's earnings are expected to grow with 12.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.08
PEG (5Y)N/A
EPS Next 2Y9.55%
EPS Next 3Y12.23%
5. Dividend
5.1 Amount
BUD has a Yearly Dividend Yield of 1.38%.
Compared to an average industry Dividend Yield of 3.03, BUD has a dividend in line with its industry peers.
With a Dividend Yield of 1.38, BUD pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
The dividend of BUD decreases each year by -12.03%.
BUD has been paying a dividend for at least 10 years, so it has a reliable track record.
BUD has decreased its dividend recently.
Dividend Growth(5Y)-12.03%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
51.68% of the earnings are spent on dividend by BUD. This is a bit on the high side, but may be sustainable.
DP51.68%
EPS Next 2Y9.55%
EPS Next 3Y12.23%
59.56
-0.5 (-0.83%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryBeverages
Earnings (Last)
Earnings (Next)
Inst Owners20.3%
Inst Owner Change-2.65%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap115.44B
Analysts82.5
Price Target81.71 (37.19%)
Short Float %0.83%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend1.35
Dividend Growth(5Y)-12.03%
DP51.68%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.58%
Min EPS beat(2)1.01%
Max EPS beat(2)8.16%
EPS beat(4)4
Avg EPS beat(4)8.8%
Min EPS beat(4)1.01%
Max EPS beat(4)20.27%
EPS beat(8)8
Avg EPS beat(8)7.13%
EPS beat(12)12
Avg EPS beat(12)8.52%
EPS beat(16)14
Avg EPS beat(16)8.77%
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-3.28%
Max Revenue beat(2)-2.1%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-4.2%
Max Revenue beat(4)4.57%
Revenue beat(8)2
Avg Revenue beat(8)-1.89%
Revenue beat(12)2
Avg Revenue beat(12)-1.98%
Revenue beat(16)6
Avg Revenue beat(16)-1.07%
PT rev (1m)-0.15%
PT rev (3m)-2.55%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)7.52%
EPS NY rev (1m)0.17%
EPS NY rev (3m)6.52%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)2.74%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 13.32 | ||
| P/S | 1.97 | ||
| P/FCF | 9.9 | ||
| P/OCF | 7.6 | ||
| P/B | 1.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.7 |
EPS(TTM)3.88
EY6.51%
EPS(NY)4.47
Fwd EY7.51%
FCF(TTM)6.02
FCFY10.1%
OCF(TTM)7.84
OCFY13.16%
SpS30.19
BVpS41.62
TBVpS-38.8
PEG (NY)2.08
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 8.82% | ||
| ROCE | 8.71% | ||
| ROIC | 6.35% | ||
| ROICexc | 6.62% | ||
| ROICexgc | 76.01% | ||
| OM | 26.51% | ||
| PM (TTM) | 12.16% | ||
| GM | 55.7% | ||
| FCFM | 19.92% |
ROA(3y)2.69%
ROA(5y)2.17%
ROE(3y)7.38%
ROE(5y)6.2%
ROIC(3y)6.05%
ROIC(5y)5.66%
ROICexc(3y)6.43%
ROICexc(5y)6.06%
ROICexgc(3y)81%
ROICexgc(5y)72.75%
ROCE(3y)8.3%
ROCE(5y)7.79%
ROICexcg growth 3Y11.31%
ROICexcg growth 5Y15.72%
ROICexc growth 3Y4.65%
ROICexc growth 5Y2.73%
OM growth 3Y-0.42%
OM growth 5Y-3.7%
PM growth 3Y4.44%
PM growth 5Y-10.98%
GM growth 3Y-1.3%
GM growth 5Y-1.99%
F-Score7
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 6.48 | ||
| Debt/EBITDA | 3.44 | ||
| Cap/Depr | 65.6% | ||
| Cap/Sales | 6.04% | ||
| Interest Coverage | 4.35 | ||
| Cash Conversion | 72.68% | ||
| Profit Quality | 163.87% | ||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.67 |
F-Score7
WACC6.16%
ROIC/WACC1.03
Cap/Depr(3y)85.67%
Cap/Depr(5y)89.39%
Cap/Sales(3y)7.73%
Cap/Sales(5y)8.33%
Profit Quality(3y)163.01%
Profit Quality(5y)238.24%
High Growth Momentum
Growth
EPS 1Y (TTM)9.61%
EPS 3Y4.79%
EPS 5Y-1.83%
EPS Q2Q%8.89%
EPS Next Y7.4%
EPS Next 2Y9.55%
EPS Next 3Y12.23%
EPS Next 5Y12.15%
Revenue 1Y (TTM)-2.35%
Revenue growth 3Y3.25%
Revenue growth 5Y2.69%
Sales Q2Q%-2.15%
Revenue Next Year1.22%
Revenue Next 2Y3.11%
Revenue Next 3Y3.98%
Revenue Next 5Y4.34%
EBIT growth 1Y2.99%
EBIT growth 3Y2.81%
EBIT growth 5Y-1.1%
EBIT Next Year40.29%
EBIT Next 3Y17.25%
EBIT Next 5Y12.28%
FCF growth 1Y56.54%
FCF growth 3Y6.91%
FCF growth 5Y4.78%
OCF growth 1Y19.49%
OCF growth 3Y0.57%
OCF growth 5Y1.41%